I buy and sell a lot of old bikes and yeah, 99.9% of them need a complete overhaul. They may be ridden without one but usually the cables are junk and the bearing grease is hard and useless. Based on what I see in the photo the bike doesn't look to be in "rough condition" but just needing an overhaul.
IMO, $125 is too much unless the bike is in excellent ready-to-ride condition. I'd consider that price top-end. If you are looking to flip the bike, forget about it. If you're looking for something to ride I would still keep looking unless you had your heart set on a UO-8.